Half Moon Bay, Calif.: Ford may well have coined the term “sport-utility vehicles” back in the 1960s, but Jeep was the brand that defined its essence at least a decade earlier than that.

And when the SUV — more particularly the luxury models — came into their own in the early ’80s, few vehicles defined that segment the way the Grand Cherokee did.

Since then, more than one Chrysler “partner” has come and gone — each trying to imprint its mark on this iconic brand, while the Grand Cherokee has soldiered on. While it has seen an ebbing market share since its heydays, with Chrysler once again calling its own plays, the Grand Cherokee is poised to reclaim its share of the SUV pie, one that is still very much alive despite its anticipated demise by the Prius-loving crowd.

For 2011, the name is the same, but this Jeep is new inside and out. It offers more of everything in its base model at a price lower than what is on the window stickers of 2010 versions. But it’s not just about gewgaws and gadgets; there is also a new, 290-horsepower Pentastar V6 engine available that will burn as little as 8.9 litres per 100 kilometres on the highway.

That equals just more than 1,000 km to a tank of gas in a vehicle that will also tow up to 2,273 kilograms — not bad for a gas-sucking SUV. However, if you want the snap and snarl of a V8, the 5.7L Hemi is still available. But, after having driven the new V6, I would choose to save my money for ice cream because I won’t need it for gas.

The starting price on the entry-level Laredo E is $37,995, with the Limited clocking in at $46,995 and the Overland sliding in at just less than $50,000 — these prices are between 6% and 9% below current 2010 pricing.

The sheetmetal lines on the new Grand Cherokee are now more rounded than square — but not soft. Instead, they seem to emphasize the elongated body, making the whole vehicle look tensed. This new styling is also a function of the Grand Cherokee’s all-new frame.

Chrysler folks took some glee in telling us the frame is the same as the one for the next-generation Mercedes ML sport-ute, which is not out yet. Of course, this was a joint project before the Daimler and Chrysler split. However, as in some divorces, these things sometimes work out better for one party than the other. The net result for Chrysler is an advanced air suspension system that raises and lowers as directed (or as the computer dictates), a longer wheelbase, more interior room, a better stance, more crash protection and a much improved ride — all at a Jeep price.

These chassis’ qualities were very apparent on my drive through the coastal mountains just south of San Francisco, an area that rises and falls and twists and turns. While zipping along the switchbacks, I delighted in steering that was tight and responsive while enjoying an interior that was Sunday quiet.

If Chrysler was getting slagged for poor interior designs of late, it deserved it. But, for the Grand Cherokee anyway, that day is gone. The SUV’s roomier interior is fitted with much better materials, soft-touch plastics, leather, decent accents and enough legroom in the second row to finally enjoy it. And the second-row seats now recline up to 12 degrees.

If there is a gremlin hiding under this new Jeep it’s the transmission. Not that there is anything wrong with the veteran five-speed automatic, but that’s just it — it’s still a five-speed when the competitors have gone to six-speeds. The reason? Money. With only so many development dollars available, Chrysler has opted to partner with German transmission builder ZF on a forward-looking eight-speed automatic rather than just catch up with a six.

However, this eight-speed box won’t be available for two to three years. That’s a shame because, while the power of the Hemi overcomes the gaps in the five-speed, the new Pentastar V6 feels it right between first and second. Is this a fatal flaw? No. While you feel this slight lag, you might also notice the gas station you’re passing and decide you’re on the right end of that trade-off.

No Jeep test is ever complete without going off-road. I did that at a park near Hollister, where the course was more suited to mountain goats. In fact, it seemed excessive. We climbed steep hills, picked through boulders and manoeuvred through steep mountainside washes. The Grand Cherokee handled every situation, proving once again that it is (despite power options and leather interiors) first and foremost a Jeep.